Gyms face OFT probe after complaints that contracts may unfairly lock in customers

A number of gyms and fitness centre chains are to investigated by the Office of Fair Trading after accusations that customers are being unfairly locked into lengthy contracts and pursued by aggressive debt collectors.

The OFT is concerned that some gyms may be imposing unfair contract terms by making it difficult for members to end contracts.

A spokesman from the OFT said it was unable to name the firms involved due to legal reasons but said that it follows a High Court judgement made against a gym management company last year.

Work it out: The Office of Fair Trading has now confirmed that it is investigating a number of gyms for imposing unfair contract terms on customers.

Last year the OFT won a landmark legal case
against Ashbourne Management Services, a company which draws up
agreements and collects payments for smaller gyms.

During the case the judge looked at the length on contracts, between one and three years, ruling that it was unfair to lock customers in for more than 12 months without the option of leaving with 30 days' notice when Ashbourne knew that many consumers stop attending the gym after two or three months.

It also ruled that firms should not enforce unfair debt collection practices on customers.

The ruling was not binding to other gym chains but became important after the OFT warned that it would seek to apply it to other businesses.

A spokesman from the OFT said that the firms involved in the investigation would not be named until it had concluded its findings.

David Stalker, CEO of the Fitness Industry Association, on behalf of their members said: 'After the 2011 OFT v Ashbourne Management Services ruling, the FIA issued key industry recommendations relating to contracts. These included guidance on adequate and reasonable provision for a consumer to end or pause a contract before the minimum term in certain circumstances, on the admittance of evidence. Our members have integrated this guidance within their contracts and have clear terms and conditions for early termination of contracts.'

'Health clubs and leisure centres generally offer a wide variety of membership options to suit individual budget and training needs. Their membership services team are on hand to ensure consumers are aware of their terms and conditions when joining and can advise them on all contract matters throughout their membership. Many now offer one day guest passes and, if you are joining a gym for the very first time my advice is to take them up on this offer, and try before you buy.'